GSM/3G Main Focus for the Mobile Industry

14th June , 2004

US : GSA confirms that the deployment of GSM/3G services is the main focus for the mobile industry worldwide. Enhanced multimedia services including picture messaging and video streaming are commercially available on evolved-GSM networks using EDGE (Enhanced Datarates for Global Evolution) and WCDMA technology, and on combined EDGE/WCDMA systems.

EDGE is the natural evolution for all GSM operators, boosting performance and improving capacity 3-4 times, and delivering triple data rates when compared to GPRS. These benefits are achieved for only incremental cost to an operator delivering 3G services today within its existing licence and spectrum allocation. WCDMA is the most spectrally efficient evolved solution for even higher data rates and capacity improvements in new 3G/IMT-2000 spectrum. A total of 120 WCDMA licenses have been awarded in 40 countries worldwide. GSM/EDGE/WCDMA is now firmly in the commercialisation phase:

At end-March 2004 there were 4.3 million WCDMA customers enjoying high speed data served by 26 commercial networks. A further 17 networks are in the pre-commercial phase
A wide variety and number of WCDMA handsets and datacards from several manufacturers ensure maximum competitive choice for users and network operators
78 operators in 53 countries are committed to deploy EDGE; 16 networks today offer commercial services on all continents
A wide variety and number of EDGE devices from the leading manufacturers ensure competitive choice for users and network operators
GSM leads in next generation services. GSM operators report the highest percentage of revenues coming from data services, providing revenue growth for both data and voice services.
Alan Hadden, President, GSA, speaking immediately after the GSM Evolution Forum held in Beijing today, said: "Commercialisation of WCDMA and EDGE is happening now globally. China has an immediate opportunity to participate in 3G services with EDGE/WCDMA for the best user experience at lowest cost, and to generate revenue growth from new services in a truly global market. GSM/EDGE/WCDMA technology provides the highest performing roadmap to 3G, ensuring the highest bit rates in commercial networks, standardised quality of service mechanisms for all 3G services such as streaming, interactive, conversational and background applications, video telephony, and the highest spectral and cost efficiencies. We look forward to assisting and participating in this exciting new growth phase."

China accounts for nearly 250 million GSM customers out of a global total exceeding 1 billion GSM users. In China, the number of GSM users is more than 10 times the next technology.

All the 3G enablers are in place for widespread take up across all market segments. Openness and interoperability, the fundamentals of GSM's success, are repeated with EDGE and WCDMA as these technology enhancements rapidly enter the global mass market and leverage GSM's unparalleled economies of scale. Automatic International roaming, providing important additional revenues for GSM operators and unique to GSM, applies to data services as well as voice, giving users a rich, convenient and seamless multimedia services experience globally.

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